The Lure of the Lemonade Stand: Your Child’s First Business

Are you interested in helping your kid start a first business like a lemonade stand, but need some backup? Consider signing up your budding entrepreneur for National Lemonade Day. Many communities hold coordinated Lemonade Days sometime in May. Signups are underway now.

When they participate in Lemonade Day, your child gets a free backpack filled with everything they need to know about running a successful small business. This includes an explanation of the mysterious “supply costs.” Parents of first-time stand proprietors can tell you: Most kids have no idea that someone actually has to pay for lemonade and other ingredients, then get reimbursed from the stand’s profits. In other words, ingredients aren’t magically produced for free by Mom and Dad.

Adult Supervision Required

Each Lemonade Day setup kit also includes an adult guide. The sponsoring nonprofit organization, Prepared 4 Life, requires kids to partner with a responsible adult—a parent, grandparent, teacher or neighbor—on the project. The guide prompts adults to ask the kids key questions to help them set financial goals, choose a site for their stand, create an advertising plan and more.

This project also emphasizes the three-jar money concept of spending, giving and saving. Once kids earn their Lemonade Day profits and pay for their original supplies, they get to:

  1. Keep some of their earnings
  2. Connect with a local bank to save some of the profits, and
  3. Choose a charity to which they’ll donate a portion of their funds

The Lemonade-Day Advantage

Of course, you can always help your kid start a drink stand—or a dog-walking or lawn-mowing business—on their own, anytime. The coordinated Lemonade Day project just gives your kid’s business some extra structure and support. Plus, local organizers often connect kids with sponsoring community organizations.

Is your community participating in National Lemonade Day? Check the map.

(photo courtesy © Elvert Barnes cc2.0)

Amazon Prime Day 2019 with Greenlight

18.5% of Greenlight kids have spent money at Amazon

So by our predictions, your kids are probably already buzzing about Amazon Prime Day next week (July 15-16). Maybe they’ve been reading rumors of most epic tech markdowns or set up fancy price alerts to know as soon as their prized item is down to their savings goal balance. (Want price alerts of your own? Here’s one way to set them up.)

As always, we’ve been thinking about how Prime Day can fit into money talks, plus how Greenlight can help you manage spending safely. 

Time for budget talks

What makes a good deal? Fortunately, most kids are expert Googlers. Before they click for the checkout button, work with them to search for competing prices and to balance the value of the newest version of the computer or sneaker they’re eyeing vs. last year’s model.

Set up greenlights

Set up greenlights to control how much your kids can spend at Amazon. No shocking credit card bills. No overdraft fees. No surprises.

Amazon Prime Day 2019

Back to school is upon us

For some districts, school is back in session in July. Now is prime time (see what we did there?) to think about clothes, supplies and electronics your kids need for the next year. 

Bring kids into the conversation. Set a budget for each child and talk with them about Amazon deals fit into that budget. 

Pro tip: Scary Mommy will be live blogging the best back to school Amazon Prime Day deals next week. And we’re on the edge of our seats. 

We’re sitting on some great ideas on how to bring kids in on back to school shopping without getting in the way. Stay tuned – more on that topic over the next couple weeks.

Haven’t joined Greenlight yet?

Get started by signing your family up today.

Summer Spending & Saving with Greenlight

Summers are busy. Between visits to grandma, beach trips, summer camp, and the inaugural summer job (!), your kids may be spending tons of time away from home. Throughout the coordinated chaos, Summer offers great opportunities to continue money talks with your kids.

Family Vacations

Many families go on summer trips. In fact, 68% of you fine American families* will hit the road before school starts. 

Use this as an opportunity to talk to your kids about the value of saving. Discuss the tradeoffs you made throughout the year to fund your excursion and talk about the specific costs associated with you trip. 

Scholastic has a lesson with a couple handy worksheets – including a trip cost calculator in case you need a bit of help. (Don’t worry – we also learned a thing or two.)

Summer Jobs

For parents of teens, this summer may be the first one employed, and may it be the first of many. Before your kids pull out their Greenlight card to spend all of their Friday paycheck on Fortnight Battlepacks, remind them of the practice of saving. 

Work with them to develop a distribution plan for their paychecks. How much will they put into Save, Spend and Give accounts on a regular basis?

The first job is probably the first time your kids encounter the not-so-simple world of income taxes. And before you click away from this page in search of safer waters, know that the earlier you approach the subject of Uncle Sam with your kids, the more prepared they’ll be when the leave the house. 

Going over their pay stub is a great way to show teens how taxes impact their take-home pay. Talk with them about the purpose of social security, medicare, federal, state and local taxes. The Consumer Financial Protection Bureau has a simple guide to the anatomy of a paycheck that may help. Remind them that smart budgeting (see savings tip above), helps you account for the tax you pay.

(Side note: did you know teens can directly deposit their paychecks into their Greenlight accounts?)

Back to School

In 2018, Deloitte estimated families spent $510 per child**, on average, on back to school expenses. Between clothes, electronics and general supplies, that’s a hefty penny. And also an opportunity to reinforce the conversation of budgeting, especially when it comes with the price tag of a new school year. 

Later in July, we’ll talk about how to instill healthy money habits into routines as the kids go back to school. Follow us on social media for the latest tips and tricks about money talks and recent updates to the Greenlight app.

Don’t have Greenlight yet? 

Get started by signing your family up today.

*2019 AAA Travel Survey

**Deloitte 2019 Back to School Survey